Cambria Africa Plc

("Cambria" or "the Company")

Trading Update and Extension of Reporting Deadline

Further to the announcement on 21 September 2020, the Company provides the following update.

Net Asset Value (NAV)

The Company continues to expect FY 2020 (31 August 2020) NAV to remain at or near the $7.17 million levels (1.32 US cents per share) reported at the time of its interim results for 29 February 2020. Significant components of the NAV include a $2.5 million valuation of Paynet Zimbabwe's Headquarters and its adjacent plot with main road frontage and its investment in Radar Holdings Limited valued at $1.74 million. Cash and cash resources outside Zimbabwe at the end FY 2020 amounted to $1.8 million.

Subsequent to the end of the reporting period, Cambria utilised some of its cash resources to settle $400,000 of its $500,000 loan obligation to Ventures Africa Limited ("VAL") leaving an outstanding balance to VAL of $100,000.  Other than this, the Group is virtually debt-free with current cash resources outside Zimbabwe of $1.36 million, and the Company will save over $32,000 per annum in interest expense.

Operating subsidiaries

Cambria's operating subsidiaries and divisions Tradanet (51% owned), Millchem and Autopay continue to operate at near or above cash flow break-even levels, albeit based on substantially lower revenues.

Subsequent to the end of FY2020, Paynet Zimbabwe successfully re-established its relationship with Paywell South Africa for the provision of payroll software licenses allowing its Autopay division to continue providing payroll outsourcing services and payroll software licenses to its substantial client base in Zimbabwe.

Old Mutual Limited Portfolio Value

The Company holds 204,000 Old Mutual shares on the Zimbabwe Stock Exchange (ZSE:OMU) ("ZSE") which remain suspended since July 2020. Unlike other dual-listed shares which have regained fungibility by moving their listing to the newly established Victoria Falls Securities Exchange, Old Mutual has been unable or unwilling to do the same.  This has left Old Mutual shareholders on the ZSE with no route to crystallize their Old Mutual investment. The Company purchased its shares on 12 August 2019 on the Johannesburg Stock Exchange (JSE:OMU) and transferred them to the Zimbabwe register to guarantee Paynet's bid to increase ownership in Radar Holdings Limited.

The Company has recently approached the regulatory authorities in Zimbabwe to repatriate its remaining shares of Old Mutual Limited to the JSE.  If the Company succeeds, the market value of its shares would be approximately US $200,000 based on the London Stock Exchange's ("LSE") close price of 67.52p, on 23 February 2021.

The Company strongly believes that Old Mutual Limited abdicated its fiduciary obligation to its shareholders by acquiescing to the suspension of its shares on the ZSE. On 28 August 2020, the Company received this unsatisfactory response from the Chief Legal Officer and Head of Legal for Old Mutual Limited:

"As you may appreciate, this is a complex situation and we vigorously continue to engage the relevant authorities to find a feasible solution. We will update all of the stakeholders of the company once we are in a position to do so." 

The Company has not heard from Old Mutual Limited's Head of Legal since 28 August nor has Old Mutual Limited ever disclosed its strategy to re-establish liquidity for its effectively second-class shareholders on the ZSE.

Extension of Reporting Deadline

Due to the effect of COVID-19 pandemic, the Company will not be able to post its annual audited report and accounts for the financial year ended 31 August 2020 (the "Annual Report") to shareholders by 28 February 2021. The Company has applied, pursuant to the guidance provided in "Inside AIM" on 27 January 2021, for an additional period of up to three months to publish the Annual Report. The Company has been granted the extension and therefore the Company will publish the Annual Report by no later than 31 May 2021.